Ex-Goldman Sachs Fraudster Fabrice Tourre to Teach Economics at University of Chicago

Ex-Goldman Sachs Alleged Fraudster Fabrice Tourre to Teach at University of ChicagoReuters

The former Goldman Sachs vice-president Fabrice Tourre, who was convicted on six counts of securities fraud six months ago, has landed a new job as an economics teacher at a prestigious university in the US.

Tourre, also known as "Fabulous Fab," will teach a class called 'Elements of Economic Analysis' on Thursday afternoons, followed by a discussion on Monday.

His teaching stint will be part of his pursuit of a doctorate at the university.

Last month, Tourre failed to persuade US District Judge Katherine Forrest in Manhattan to dismiss the case or go for a new trial, as part of his appeal against charges that he defrauded investors in a sub-prime mortgage investment deal five years ago.

He claimed that his conduct did not amount to fraud and there was not enough evidence to support defrauding charges. He also argued that Forrest had instructed jurors incorrectly on the law.

"None of these arguments has merit," the judge said.

The US Securities and Exchange Commission (SEC) had earlier accused Tourre of misleading investors in a sub-prime mortgage investment deal called Abacus 2007-AC1, and of secretly helping billionaire John Paulson's hedge fund make a billion dollars in profit by betting against the fund.

The mortgage product tanked when the US housing market crashed. However, Paulson made $1bn (€754m, £657m) from the deal.

Goldman Sachs, charged along with Tourre in 2010, settled the case for $550m without admitting or denying any wrongdoing.

The US government seized Tourre's personal and professional emails to prove that the 34-year-old banker, who earned $1.7m in 2007, enticed investors into a deal that was actually designed to fail. Tourre has been battling the claims of the SEC for three years.

Forrest upheld the 1 August ruling that found Tourre liable on six of the seven civil charges brought by the SEC.

The case is SEC versus Tourre, US District Court, Southern District of New York, No. 10-03229.